Essentials

• China's Economy Grows 5 Years on Year in Fourth Quarter.2%, less than 5.3% forecast。
• Retail sales were weak in December, while industrial production data indicated a pick-up in manufacturing activity.。
• Markets will continue to expect a strong stimulus package from Beijing to support the economy。China: Economic indicators call for more stimulus from Beijing

China's economy in focus Wednesday。Industrial production, fixed asset investment, retail sales, unemployment rate and fourth-quarter GDP data have attracted investors' attention.。

china's economy grows 1 year on year in fourth quarter.0%, down from Q3 1.3% growth。YoY, economic growth 5.2%, up from Q3 4.9% YoY Growth。Economists forecast quarterly growth of 1% and year-on-year growth of 5.3%。

However, December's retail sales and industrial production data sent conflicting signals.。

Retail Sales Growth YoY 7.4%, compared to 10 in November.1%。Industrial production increased by 6.8%, compared to 6 in November.6%。Economists forecast retail sales and industrial production to grow 8.0% and 6.6%。Unemployment unexpectedly rises from 5.0% to 5.1%。

Investors may see the boost in industrial production as a favorable outcome that could herald an improved demand environment。Still, weaker growth could force Beijing to offer stronger stimulus。

AUD / USD Reactions to Chinese Economic Indicators

AUD / USD down to 0 before statistics release.A low of $65,785 before rising to 0.High of $65931。

However, after responding to the Chinese data, the AUD / USD exchange rate fell to 0.A low of $65,879, before rising to 0.High of $65942。

AUD / USD up 0 on Wednesday.15%, reported 0.65937 USD。

U.S. Retail Sales and Federal Reserve Speech

US retail sales to get investors' attention Wednesday。Weaker expectations of a Federal Reserve rate cut in March will put more emphasis on these data。Rising retail sales could give Federal Reserve reason to delay rate cut。

Economists predict December retail sales will grow 0.4% (November: + 0.3%)。

Other statistics include real estate-related data and industrial production data。However, the focus will be on retail sales data。

In addition to the data, the comments of FOMC members need to be considered。FOMC members Michelle Bowman, Michael Barr and John Williams are scheduled to speak。FOMC members' comments on economic outlook, inflation and interest rates will be of interest to investors。